HECS/HELP Repayment Calculator
Updated for FY2025-26
Find out your compulsory HECS/HELP repayment for FY2025-26 and what crossing the next band would cost. Built for the new marginal system that replaced the old flat-rate-on-total approach in July 2025.
Repayment income is gross salary plus reportable employer super, reportable fringe benefits, net investment losses, foreign income, and salary-sacrificed amounts. Find your exact figure in MyGov under “Help and SFSS Loans”.
HECS/HELP Repayment
Compulsory repayment: $3,450 (3.8% of $90,000 repayment income).
FY25-26 repayment bands
| Band | Income | Rate |
|---|---|---|
| 1 | $0 – $67,000 | Nil |
| 2 | $67,001 – $125,000 | 15c per $1 over $67,001 |
| 3 | $125,001 – $179,285 | $8,700 + 17c per $1 over $125,001 |
| 4 | $179,286+ | 10% of total income |
Next band threshold
Band 3 starts at $125,001 ($35,001 more income)
Repayment at threshold: $8,700
Crossing the threshold adds +$5,250 per year
Repayment at nearby incomes
$80,000
$1,950
band 2
$90,000
$3,450
band 2
$100,000
$4,950
band 2
$120,000
$7,950
band 2
This calculator covers a single financial year. The full ProjectFi planner projects HECS over your career with annual indexation, salary growth, and voluntary repayments, useful for the “when will I clear it?” question. Try the full planner
How HECS/HELP repayment works in FY2025-26
The Australian HECS/HELP repayment system was overhauled effective 1 July 2025. The previous approach was a flat percentage of total repayment income across 19 progressive brackets, where crossing a bracket boundary by $1 could lift your entire compulsory repayment by hundreds of dollars. The new FY25-26 system replaces that with a marginal four-band structure (with one quirky exception at the top).
The new bands:
- Band 1 (nil): $0 to $67,000. No compulsory repayment.
- Band 2 (15% marginal): $67,001 to $125,000. 15 cents per dollar over $67,000.
- Band 3 (17% marginal): $125,001 to $179,285. $8,700 plus 17 cents per dollar over $125,000.
- Band 4 (10% flat on total): $179,286 and above. 10% of total repayment income (NOT marginal).
The top-band kink
At $179,285, band 3 produces $8,700 plus $54,285 times 17% equals about $17,928. At $179,286 (band 4), the calculation switches to flat 10% of total income equals about $17,929. The boundary is essentially seamless. But as income rises further, the flat 10% diverges from what continued marginal extrapolation would produce. At $250k, band 4 gives $25,000 (10% flat) versus $29,950 if the 17% marginal continued. The flat-rate design makes the top band MORE favourable than a continued marginal scheme would.
Why the marginal system matters
Under the old flat-percentage system, a $1 pay rise could lift your repayment percentage from (say) 4% to 4.5%, applied to your TOTAL income. That meant crossing a bracket could cost you $400 or more in extra repayment for $1 of income. The new marginal system caps that effect: a $1 pay rise lifts your repayment by 15 cents (band 2), 17 cents (band 3), or 10 cents (band 4). Much smoother, and aligned with how income tax brackets work.
What is HECS Repayment Income?
Repayment income is broader than taxable income. It includes gross salary, reportable employer super contributions (which includes salary-sacrificed amounts), reportable fringe benefits, net investment losses, and foreign income. Important: salary-sacrificing into super DOES NOT reduce your HECS repayment income. The sacrificed dollars are added back. So salary sacrifice helps your income tax but doesn't help your HECS bill.
For an exact figure, log into MyGov, navigate to ATO online services, then Help and SFSS Loans, then Repayment income. Your employer also calculates this when withholding HECS from your pay each fortnight.
Worked example
Sam earns $90,000 and has $35,000 of HECS debt. At $90k, Sam is in band 2 ($67,001 to $125,000). The repayment is 15 cents per dollar over $67,000: ($90,000 minus $67,000) times 15% equals $3,450 compulsory repayment this FY. That's about 3.83% of repayment income.
To cross into band 3, Sam would need a $35,001 pay rise (to $125,001). At that income, repayment becomes $8,700 plus $0.17 equals $8,700.17, about $5,250 more than now. The marginal-rate jump from 15% to 17% means each extra dollar of income at that boundary costs Sam an extra 2 cents in repayment.
At Sam's current rate of $3,450 per year, the $35,000 balance would clear in about 10.1 years if salary stayed flat and indexation didn't apply. In reality, indexation (capped at the lower of CPI and WPI under the 2025 reforms) adds to the balance each year, while salary growth lifts the repayment rate. The full ProjectFi planner models both.
What this calculator doesn't model
Out of scope: multi-year indexation (1 June each year, capped at the lower of CPI and WPI), salary growth over time, voluntary repayments (lump-sum or before-1-June timing strategy), proper years-to-clear with indexation and growth (the v1 figure is naive and labelled as such), SFSS / TSL / ABSTUDY SSL (other study loans with different bands), and foreign-resident HECS rules (different reporting requirements).
The full ProjectFi planner models proper indexation plus salary growth plus voluntary repayments for the multi-year “when will I clear my HECS” question.
Sources and references
Australian HECS/HELP repayment thresholds and rates: ATO study and training loan repayment thresholds and rates. The FY25-26 system was introduced by the Universities Accord (Student Support and Other Measures) Act 2025.
Want to see how HECS plays out alongside super, tax, and the rest of your FIRE plan over a full career horizon? The ProjectFi planner handles all of it.
FAQ
- What's the FY2025-26 HECS/HELP system?
- FY2025-26 introduced a marginal repayment system replacing the previous flat-percentage-on-total approach. Four bands: nil up to $67,000, then 15c per $1 over $67,000 (band 2), then $8,700 plus 17c per $1 over $125,000 (band 3), then a flat 10% of total repayment income at $179,286 and above (band 4). The marginal structure means a small pay rise no longer triggers a large jump in repayment, except at the top where the flat rate kicks in.
- What is "repayment income"?
- Repayment income (HECS Repayment Income or HRI) is gross salary plus reportable employer super contributions plus reportable fringe benefits plus net investment losses plus foreign income plus salary-sacrificed amounts. It is NOT just your taxable income. For an exact figure, log into MyGov and check Help and SFSS Loans, then Repayment income. For most salaried Australians, repayment income is roughly salary plus 12% SG.
- Why is the top band a flat 10% instead of marginal?
- The published FY25-26 bands cap out at $179,286 with a flat 10% rate on total repayment income. The choice means high earners pay slightly LESS than a continued marginal extrapolation would predict (at $250k the flat-rate gives $25,000 vs $29,950 if the 17% marginal band 3 continued). The calculator reflects the published system accurately.
- Does the calculator factor in indexation?
- No. HECS balances are indexed each year on 1 June (CPI-capped at WPI under the recent legislative reforms). This calculator shows your single-FY repayment and a naive years-to-clear figure assuming salary stays flat and ignoring indexation. The full ProjectFi planner models indexation properly.
- What about voluntary repayments?
- Out of scope for this v1 calculator. Voluntary repayments reduce the balance immediately and can save indexation if made before 1 June. The full ProjectFi planner models voluntary contributions; this calculator focuses on compulsory.
- Does salary sacrifice change my HECS repayment?
- Yes. Sacrificed amounts are added back into repayment income for HECS purposes. Sacrificing $5,000 doesn't reduce your HECS repayment income, even though it reduces your taxable income and your income tax. The Salary Sacrifice vs Invest calculator covers this nuance in detail.
- What if I have HECS and SFSS or other study loans?
- The calculator covers HECS/HELP only. SFSS (Student Financial Supplement Scheme), TSL (Trade Support Loan), and ABSTUDY SSL have separate thresholds and rates. Most users only have HECS; if you have multiple study loans, the full ProjectFi planner handles them.
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